Are you struggling with the inefficiencies of traditional billing models in professional services?  

The shift from a “time and materials” approach to outcome based engagements is no longer just a trend—it’s a necessity. Clients now demand more value and measurable results, challenging firms to rethink their strategies. 

This is where RISE with SAP steps in. By transforming how professional services firms manage their engagements, RISE with SAP provides a modern framework for outcome-based engagements, ensuring that you not only meet but exceed client expectations while streamlining your operations.  

This blog discusses the transformative power of RISE with SAP for outcome-based engagements in professional services. Let us begin by defining strategic priorities and their benefits for the Professional Services Industry! 

The Professional Service Industries have set of strategic priorities to transform their businesses into intelligent enterprises and help them to prepare to meet the expectations of tomorrow’s consumers. Now let’s have a look at those strategic priorities. 

Strategic Priorities for Professional Service Industries 

• Outcome-Based Engagements

The traditional “time and materials” model is being replaced by outcome-based engagements. This approach focuses on delivering measurable results and aligning pricing with the value provided. It requires firms to refine their bidding processes, ensuring accuracy and predictability in outcomes while minimizing delivery risks. 

• Talent Networks

Hiring and managing talent efficiently is essential for delivering high-quality services. Modern technology enables firms to better understand and utilize their talent, fostering a more effective and collaborative work environment. 

• Knowledge as a Service

Leveraging expertise beyond traditional client engagements can drive additional value. Firms are increasingly productizing their services and creating knowledge hubs, allowing them to monetize their expertise and offer valuable insights even outside direct client interactions. 

Here’s just a glimpse of the Strategic Priorities and Key Business Drivers in Professional Services. If you want to know more, click here. 

RISE with SAP for Pro Serv Industry – Outcome-Based Engagements 

Intelligent technologies embedded with the RISE with SAP framework play a critical role in enabling professional services industries to become a digitally transformed enterprise. Adapting to this enables your organization to redesign entire business models, processes, and products by driving enterprise digitalization through product development. 

Why Outcome Based Engagements Matter? 

Outcome-based models are replacing the simple “time and materials” business model that was once highly profitable for professional services organizations. Clients are increasingly concerned with the business outcome of an engagement rather than the amount of effort required and are negotiating prices and relationships accordingly.  

The key item for most firms is to implement a superior bidding process that results in accurate proposals, ensuring predictability and repeatability of outcomes which in turn minimize delivery risks. 

To better understand this, let’s consider there are two businesses namely: 

• Company A uses a non-SAP ERP system 

• Company B uses an SAP ERP system 

As Company A’s entire business structure is governed by a non-ERP system, these were the pain points faced by them: 

• The RFx process is frequently manual and relationship-based, which requires extensive input. 

• A bottom-up effort is required to research other projects and develop a bid.

• Through multiple rounds of checking, multiple bid versions were developed, reviewed and tweaked. 

• The creation of final proposals required weeks of work from many contributors and reviewers. 

• “Time to engagement” was pushed back due to a time-consuming commercial agreement. 

• Potential for customer annoyance and missed opportunities (opportunity cost). 

• Missed opportunities and customer frustration were common because of work completion delays. 

As a result, insufficient integration of their traditional system resulted in a high involvement of manual processes. 

Whereas Company B uses an SAP ERP system, which enables them: 

• The entire system was relationship-based, and it was performing well with multiple channels of digital engagement. 

• Using existing intelligence and experience to accelerate and standardize delivery throughout the bid development process as much as possible. These predictive analytics provided insights to meet their expected success. 

• Controlled visibility and fine-tuning of the bid and commercials to produce the final proposal worked out effectively. 

• The “time-to-engage” with the customers and beginning of delivery has been drastically reduced. 

This contrast highlights the need for modern solutions like RISE with SAP to stay competitive and meet client expectations efficiently. Overall, Company B’s Intelligent ERP [RISE with SAP Package] system provides a comprehensive next-generation project workspace with real-time postings of revenue, project margin and engagement progress with a single and consolidated view of project-related information.  

Let’s explore why RISE with SAP stands out. 

Why Choose RISE with SAP for Professional Services Industry? 

RISE with SAP stands out as a premier solution for professional services firms aiming to excel in outcome-based engagements. Here’s a comprehensive look at why it’s the optimal choice for transforming your engagement models: 

• Precision in Proposal Development 

Uses advanced analytics and machine learning to improve proposal accuracy. By analyzing historical data and predictive models, the system ensures proposals meet client expectations and reduces the risk of underestimating project requirements. 

• Accelerated Bidding Process 

Traditional bidding processes often involve manual, time-consuming tasks, leading to delays and inefficiencies. It automates these tasks, significantly reducing the time required to develop and finalize bids. 

• Enhanced Predictability and Repeatability 

Enables firms to establish a standardized approach to bidding and project management. This standardization ensures that engagement outcomes are predictable and repeatable, minimizing the variability and risks associated with traditional methods. 

• Optimized Resource Allocation 

Effective resource management is critical for outcome-based engagements. RISE with SAP utilizes data analytics to optimize resource allocation, ensuring that the right resources are assigned to the right tasks based on their skills and availability. 

• Dynamic Client Interaction 

Enhances client interactions by providing transparent and interactive engagement models. Clients gain access to real-time updates and insights into project progress, fostering a collaborative and responsive relationship. 

• Strategic Differentiation 

Implementing this solution positions your firm as a leader in outcome-based engagements. By adopting cutting-edge technology and innovative practices, you demonstrate your commitment to delivering exceptional value and results, setting yourself apart from competitors. 

Conclusion 

By enhancing proposal accuracy, accelerating bidding processes, and ensuring predictable results, RISE with SAP positions your firm to exceed client expectations and streamline operations. Furthermore, it optimizes resource allocation and fosters dynamic client interactions, providing a significant edge in a competitive landscape. Embrace the future of professional services with RISE with SAP and drive your firm’s success with confidence.  

Reach out to us today at KaarTech to learn more about how RISE with SAP can boost your firm’s performance. 

 

 

FAQ’s 

1. What is outcome-based engagements in professional services?

Outcome-based engagements focus on delivering measurable results and aligning pricing with the value provided, rather than billing based on time and materials. 

2. How does RISE with SAP improve outcome-based engagements?

It enhances outcome-based engagements by automating and standardizing the bidding process, improving proposal accuracy, and optimizing resource allocation. 

3. What benefits does RISE with SAP offer for proposal development?

It uses advanced analytics to improve proposal accuracy, reduce the time needed to finalize bids, and ensure that proposals meet client expectations effectively. 

4. How does RISE with SAP support client interactions?

It provides real-time updates and insights into project progress, fostering a transparent and collaborative relationship with clients.